SA 240

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SHINY (Querist)
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11 September 2016 Hello Mates Kindly address my below mentioned query: Wts d difference b/w risk of material misstatement at Financial Statement level & Assertion level (accounting transactions, account balances & disclosures) as far as SA 240, viz. 'Responsibilities of Auditor in material misstatements due to fraud' is concerned ? Thanks in advance.

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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12 September 2016 In the case of risk of material misstatement at the financial statement level, you need to consider the materiality. Whereas in the case of material misstatement at the assertion level, you need to address the various audit assertions like existence, validity, disclosure etc. These audit assertions may or may not be risk to financial statement again depending on the materiality.